الجمعة، 25 مايو 2012

Economy

Dr.mohmmed A almusawi

The economy of Iraq is largely based on agriculture and petroleum.
Agriculture was once the backbone of Iraqi economy, and is still
important, though more as the livelihood of many people. Petroleum
production and export, which had played a vital role in the economy
since the mid 20th century, is still of great significance. The latter
part of the 20th century saw Iraq developing, and then again declining
due to the effects of the wars, which disrupted trade routes, and
destroyed factories. A trade embargo was further placed on oil exports
in the August of 1990, which was partially lifted in 1996, and then
fully lifted in 2003. Iraq is now focusing more on the development of
industries, and is trying to reduce its reliance on petroleum.
Iraq's basic currency unit is the Iraqi dinar.

Agriculture

The
Tigris-Euphrates lowland—an easily irrigated area of rich alluvial
soil—has been devoted primarily to farming since the dawn of
civilization. About one-fifth of Iraq's people make their living from
farming and herding.
Before the restrictions brought about by the
trade embargo placed on Iraq by the UN in 1990, the country was
importing around 70 percent of its food products. This was because there
was poor organization, and a lack of labor and private investment.
Agricultural
amendments in the mid 20th century led to the relocation of land, which
had been held until then by large landowners. During the period of
1967–83 the government encouraged the growth of cooperative farms, after
which encouraged more private ownership.
Principal crops include
wheat, barley, rice, dates, tomatoes, potatoes, melons, grapes, and
oranges. Other crops include cotton and tobacco. Livestock raising is
widespread, especially among the nomads, who roam steppe grazing lands
with their flocks and herds. The most numerous domestic animals are
sheep, goats, and cattle.

Mineral Production

Oil
is the chief mineral resource of Iraq, and the country once ranked as
the second-largest producer and exporter of oil in the Middle East. In
the late 20th century, the oil industry accounted for about 60 percent
of Iraq 's gross domestic product (GDP), the total value of all goods
and services produced within the country in a year. During the war with
Iran (1980–88) and the Persian Gulf War (1991), however, many oil
reservoirs, pipelines, and refineries were destroyed, and the oil trade
was disrupted. Also, after 1990 much of Iraq 's petroleum exports
terminated as a result of commercial prohibitions imposed by a UN trade
embargo. Iraq is a member of the Organization of Petroleum Exporting
Countries (OPEC).
Major oil fields of Iraq lie to the south of the
country, near the Kuwait border, and also to the west of Kirkuk in the
north. Iraq 's chemical and oil plants also lie near Baiji, Basra, and
Kirkuk . Other natural resources that are mined in Iraq include
phosphates, sulfur, and natural gas.

Manufacturing

Although
Iraq has built a number of modern manufacturing plants since World War
II, industrialization has been slow. Only about 7 per cent of Iraq's
workforce is employed in manufacturing.
Iraq's chief industries
include food processing, petroleum refining and chemical manufacturing.
Goods produced by manufacturing industries include textiles, shoes,
beverages, cement, and iron and steel and soap. Nearly all large modern
plants are owned by the government. Baghdad, Basra, and Mosul are the
principal industrial centers.

Service Industries

Industries
which include banking and real estate, provide employment to many
workers in the country. Prior to the Iraq War, about 25 percent of the
work force of the country worked for the government.

Energy Sources

Oil
and natural gas provide all the energy required in Iraq. The
availibility of electric power, however, has bee hampered by the wars.

Transportation

Many
of Iraq's roads, and most of its railways, ports, and airports, were
heavily damaged or destroyed during the Persian Gulf War. The country's
road and railway systems are concentrated in the Tigris-Euphrates region
and converge on Baghdad. Iraq's chief port facilities are at Basra,
which international airports are at Baghdad and Basra. Most Iraqis
cannot afford automobiles and use public transportation. Many city
dwellers travel on bicycles, and in the countryside people use donkeys
and camels.